PUBLICATIONS
The AGDI has published substantially in fulfillment of its mission statement of contributing to knowledge towards African development:
IDEAS
http://ideas.repec.org/d/agdiycm.html
ECONSTOR
https://www.econstor.eu/dspace/escollectionhome/10419/123513
Publication List
2016 |
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571. | Kodila-Tedika, Simplice Asongu & Florentin Azia-Dimbu Oasis A Journal of Biosocial Science, 2016. Abstract | Links | BibTeX | Tags: Statistics; Intelligence; Developing countries @article{Asongu_565, author = {Simplice Asongu & Florentin Azia-Dimbu A Oasis Kodila-Tedika}, url = {http://journals.cambridge.org/action/displayAbstract?fromPage=online&aid=10339108&fileId=S0021932016000213}, doi = {10.1017/S0021932016000213}, year = {2016}, date = {2016-05-26}, journal = {Journal of Biosocial Science}, abstract = {The purpose of this study is to assess the relationship between intelligence (or human capital) and the statistical capacity of developing countries. The line of inquiry is motivated essentially by the scarce literature on poor statistics in developing countries and an evolving stream of literature on the knowledge economy. A positive association is established between intelligence quotient (IQ) and statistical capacity. The relationship is robust to alternative specifications with varying conditioning information sets and control for outliers. Policy implications are discussed.}, keywords = {Statistics; Intelligence; Developing countries}, pubstate = {published}, tppubtype = {article} } The purpose of this study is to assess the relationship between intelligence (or human capital) and the statistical capacity of developing countries. The line of inquiry is motivated essentially by the scarce literature on poor statistics in developing countries and an evolving stream of literature on the knowledge economy. A positive association is established between intelligence quotient (IQ) and statistical capacity. The relationship is robust to alternative specifications with varying conditioning information sets and control for outliers. Policy implications are discussed. |
572. | Asongu, Simplice African Journal of Economic and Management Studies, 7 (2), pp. 164 -204, 2016. Abstract | Links | BibTeX | Tags: Africa, Banking, inflation, Monetary policy, Output effects @article{Asongu_566, author = {Simplice Asongu}, url = {http://dx.doi.org/10.1108/AJEMS-11-2012-0079}, doi = {10.1108/AJEMS-11-2012-0079}, year = {2016}, date = {2016-05-14}, journal = {African Journal of Economic and Management Studies}, volume = {7}, number = {2}, pages = {164 -204}, abstract = {Purpose – A major lesson of the European Monetary Union crisis is that serious disequilibria in a monetary union result from arrangements not designed to be robust to a variety of shocks. With the specter of this crisis looming substantially and scarring existing monetary zones, the purpose of this paper is to complement existing literature by analyzing the effects of monetary policy on economic activity (output and prices) in the CEMAC and UEMOA CFA franc zones. Design/methodology/approach – VARs within the frameworks of Vector Error-Correction Models and Granger causality models are used to estimate the long- and short-run effects, respectively. Impulse response functions are further used to assess the tendencies of significant Granger causality findings. A battery of robustness checks are also employed to ensure consistency in the specifications and results. Findings –H1. monetary policy variables affect prices in the long-run but not in the short-run in the CFA zones (broadly untrue). This invalidity is more pronounced in CEMAC (relative to all monetary policy variables) than in UEMOA (with regard to financial dynamics of activity and size). H2. monetary policy variables influence output in the short-term but not in the long-run in the CFA zones. First, the absence of cointegration among real output and the monetary policy variables in both zones confirm the neutrality of money in the long term. With the exception of overall money supply, the significant effect of money on output in the short-run is more relevant in the UEMOA zone, than in the CEMAC zone in which only financial system efficiency and financial activity are significant. Practical implications – First, compared to the CEMAC region, the UEMOA zone’s monetary authority has more policy instruments for offsetting output shocks but fewer instruments for the management of short-run inflation. Second, the CEMAC region is more inclined to non-traditional policy regimes while the UEMOA zone dances more to the tune of traditional discretionary monetary policy arrangements. A wide range of policy implications are discussed. Inter alia: implications for the long-run neutrality of money and business cycles; implications for credit expansions and inflationary tendencies; implications of the findings to the ongoing debate; country-specific implications and measures of fighting surplus liquidity. Originality/value – The paper’s originality is reflected by the use of monetary policy variables, notably money supply, bank and financial credits, which have not been previously used, to investigate their impact on the outputs of economic activities, namely, real GDP output and inflation, in developing country monetary unions.}, keywords = {Africa, Banking, inflation, Monetary policy, Output effects}, pubstate = {published}, tppubtype = {article} } Purpose – A major lesson of the European Monetary Union crisis is that serious disequilibria in a monetary union result from arrangements not designed to be robust to a variety of shocks. With the specter of this crisis looming substantially and scarring existing monetary zones, the purpose of this paper is to complement existing literature by analyzing the effects of monetary policy on economic activity (output and prices) in the CEMAC and UEMOA CFA franc zones. Design/methodology/approach – VARs within the frameworks of Vector Error-Correction Models and Granger causality models are used to estimate the long- and short-run effects, respectively. Impulse response functions are further used to assess the tendencies of significant Granger causality findings. A battery of robustness checks are also employed to ensure consistency in the specifications and results. Findings –H1. monetary policy variables affect prices in the long-run but not in the short-run in the CFA zones (broadly untrue). This invalidity is more pronounced in CEMAC (relative to all monetary policy variables) than in UEMOA (with regard to financial dynamics of activity and size). H2. monetary policy variables influence output in the short-term but not in the long-run in the CFA zones. First, the absence of cointegration among real output and the monetary policy variables in both zones confirm the neutrality of money in the long term. With the exception of overall money supply, the significant effect of money on output in the short-run is more relevant in the UEMOA zone, than in the CEMAC zone in which only financial system efficiency and financial activity are significant. Practical implications – First, compared to the CEMAC region, the UEMOA zone’s monetary authority has more policy instruments for offsetting output shocks but fewer instruments for the management of short-run inflation. Second, the CEMAC region is more inclined to non-traditional policy regimes while the UEMOA zone dances more to the tune of traditional discretionary monetary policy arrangements. A wide range of policy implications are discussed. Inter alia: implications for the long-run neutrality of money and business cycles; implications for credit expansions and inflationary tendencies; implications of the findings to the ongoing debate; country-specific implications and measures of fighting surplus liquidity. Originality/value – The paper’s originality is reflected by the use of monetary policy variables, notably money supply, bank and financial credits, which have not been previously used, to investigate their impact on the outputs of economic activities, namely, real GDP output and inflation, in developing country monetary unions. |
573. | Jellal, Simplice Asongu; Mohamed Comparative Economic Studies, 58 (June 2016), pp. 279-314, 2016. Abstract | Links | BibTeX | Tags: Foreign Aid; Political Economy; Development; Africa @article{Asongu_567, author = {Simplice Asongu; Mohamed Jellal}, url = {http://www.palgrave-journals.com/ces/journal/v58/n2/full/ces20167a.html}, doi = {10.1057/ces.2016.7}, year = {2016}, date = {2016-05-14}, journal = {Comparative Economic Studies}, volume = {58}, number = {June 2016}, pages = {279-314}, abstract = {The paper provides theoretical and empirical justifications for the instrumentality of foreign aid in stimulating private investment and fixed capital formation through fiscal policy mechanisms. We propose an endogenous growth theory based on an extension of Barro (1990) by postulating that the positive effect of aid mitigates the burden of the taxation system on the private sector of recipient countries. The empirical validity is based on data from 53 African countries for the period 1996–2010. While the findings on the tax effort channel are overwhelmingly consistent with theory across specifications and fundamental characteristics, those of the ‘government expenditure’ channel are a little heterogeneous but broadly in line with the theoretical postulations. Justification for the slight heterogeneity and policy implications are discussed.}, keywords = {Foreign Aid; Political Economy; Development; Africa}, pubstate = {published}, tppubtype = {article} } The paper provides theoretical and empirical justifications for the instrumentality of foreign aid in stimulating private investment and fixed capital formation through fiscal policy mechanisms. We propose an endogenous growth theory based on an extension of Barro (1990) by postulating that the positive effect of aid mitigates the burden of the taxation system on the private sector of recipient countries. The empirical validity is based on data from 53 African countries for the period 1996–2010. While the findings on the tax effort channel are overwhelmingly consistent with theory across specifications and fundamental characteristics, those of the ‘government expenditure’ channel are a little heterogeneous but broadly in line with the theoretical postulations. Justification for the slight heterogeneity and policy implications are discussed. |
574. | Asongu, Bertrand Moulin Simplice Research in International Business and Finance, 38 (September), pp. 202-213, 2016. Abstract | Links | BibTeX | Tags: Financial access; Information asymmetry; ICT @article{Asongu_568, author = {Bertrand Moulin Simplice Asongu}, url = {http://www.sciencedirect.com/science/article/pii/S0275531916300769}, doi = {10.1016/j.ribaf.2016.04.011}, year = {2016}, date = {2016-05-06}, journal = {Research in International Business and Finance}, volume = {38}, number = {September}, pages = {202-213}, abstract = {This study assesses the role of ICT in complementing private credit bureaus (PCB) and public credit registries (PCR) in reducing information asymmetry for financial access. The empirical evidence is based on Generalised Method of Moments with 53 African countries for the period 2004–2011. The following findings are established. First on financial access: (i) the marginal effects from interactions between ICT and PCR (PCB) are consistently positive (negative); (ii) net effects from interactions are negative with the higher magnitude from PCR and (iii) only thresholds corresponding to interactions between PCR and internet penetration are within range. Second, findings on financial allocation efficiency reveal positive marginal and net effects exclusively for mobile phones and PCR. Third, allocation efficiency may be constrained by increasing financial deposits. Overall, the complementarity between information offices and ICT in boosting financial access is still very limited. Policy implications are discussed with emphasis on improving the engaged complementarity and fighting surplus liquidity.}, keywords = {Financial access; Information asymmetry; ICT}, pubstate = {published}, tppubtype = {article} } This study assesses the role of ICT in complementing private credit bureaus (PCB) and public credit registries (PCR) in reducing information asymmetry for financial access. The empirical evidence is based on Generalised Method of Moments with 53 African countries for the period 2004–2011. The following findings are established. First on financial access: (i) the marginal effects from interactions between ICT and PCR (PCB) are consistently positive (negative); (ii) net effects from interactions are negative with the higher magnitude from PCR and (iii) only thresholds corresponding to interactions between PCR and internet penetration are within range. Second, findings on financial allocation efficiency reveal positive marginal and net effects exclusively for mobile phones and PCR. Third, allocation efficiency may be constrained by increasing financial deposits. Overall, the complementarity between information offices and ICT in boosting financial access is still very limited. Policy implications are discussed with emphasis on improving the engaged complementarity and fighting surplus liquidity. |
575. | Asongu, Uchenna Efobi & Vanessa Tchamyou Simplice S A Globalization and Governance: A Critical Contribution to the Empirics 2016. Abstract | Links | BibTeX | Tags: Africa; Governance; Globalization @workingpaper{Asongu2016cc, title = {Globalization and Governance: A Critical Contribution to the Empirics}, author = {Uchenna Efobi & Vanessa Tchamyou S Simplice A. Asongu}, editor = {African 2016 Governance and Development Institute WP/16/017}, url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Globalization-and-Governance.-A-Critical-Contribution-to-the-Empirics.pdf}, year = {2016}, date = {2016-05-01}, abstract = {This study assesses the effect of globalisation on governance in 51 African countries for the period 1996-2011. Ten bundled and unbundled governance indicators and four globalisation variables are used. The empirical evidence is based on Generalised Method of Moments. The following findings are established. First, on political governance, only social globalisation improves political stability while only economic globalisation does not increase voice & accountability and political governance. Second, with regard to economic governance: (i) only economic globalisation significantly promote regulation quality; (ii) social globalisation and general globalisation significantly advance government effectiveness and (iii) economic globalisation and general globalisation significantly promote economic governance. Third, as concerns institutional governance, whereas only social globalisation improves corruptioncontrol, the effects of globalisation dynamics on the rule of law and institutional governance are not significant. Fourth, the impacts of social globalisation and general globalisation are positive on general governance. It follows that: (i) political governance is driven by voice and accountability compared to political stability; (ii) economic governance is promoted by both regulation quality and government effectiveness from specific globalisation angles and (iii) globalisation does not improve institutional governance for the most part. Theoretical contributions and policy implications are discussed.}, keywords = {Africa; Governance; Globalization}, pubstate = {published}, tppubtype = {workingpaper} } This study assesses the effect of globalisation on governance in 51 African countries for the period 1996-2011. Ten bundled and unbundled governance indicators and four globalisation variables are used. The empirical evidence is based on Generalised Method of Moments. The following findings are established. First, on political governance, only social globalisation improves political stability while only economic globalisation does not increase voice & accountability and political governance. Second, with regard to economic governance: (i) only economic globalisation significantly promote regulation quality; (ii) social globalisation and general globalisation significantly advance government effectiveness and (iii) economic globalisation and general globalisation significantly promote economic governance. Third, as concerns institutional governance, whereas only social globalisation improves corruptioncontrol, the effects of globalisation dynamics on the rule of law and institutional governance are not significant. Fourth, the impacts of social globalisation and general globalisation are positive on general governance. It follows that: (i) political governance is driven by voice and accountability compared to political stability; (ii) economic governance is promoted by both regulation quality and government effectiveness from specific globalisation angles and (iii) globalisation does not improve institutional governance for the most part. Theoretical contributions and policy implications are discussed. |
576. | Asongu, Simplice A Journal of African Development, 18 (1), pp. 113–123, 2016. Abstract | Links | BibTeX | Tags: African development, Growth, Institutions @article{Asongu_570, author = {Simplice A Asongu}, editor = {Augustin K Fosu}, url = {http://www.jadafea.com/wp-content/uploads/2016/04/08_Book_Review_Asongu.pdf}, year = {2016}, date = {2016-04-30}, journal = {Journal of African Development}, volume = {18}, number = {1}, pages = {113–123}, abstract = {Augustin K. Fosu, a leading and respected expert in the field of African development has edited an interesting bulk of studies in a book entitled: Growth and Institutions in African Development. The book is a timely contribution to knowledge that offers very interesting insights into views and agenda within rigorous theoretical and empirical frameworks on policy issues surrounding the relevance of growth and institutions in African development. The book’s coverage comprises of 15 chapters presented into two main subject areas, namely: growth and institutions. Each of the two subjects is further divided into two parts. On the one hand, the growth area covers: (i) growth determinants (industrial embeddedness, innovation, exchange-rate regimes and environmental quality); and (ii) sectors, dynamics and distribution of growth. On the other hand, the institutions area entails: (i) institutional development; and (ii) institutions and development outcomes. An interesting common denominator among authors of various chapters in the two subject areas is that the empirical results are succinctly summarised to enhance accessibility and readability by interested readers who might have required technical reading skills to understand the rigorous empirical analyses and resulting policy insights. Hence, it is an easy-to-read and richly policy-relevant book for both specialists and non-specialists. Moreover, the underlying ease of readership is facilitated with an introductory chapter by Augustin K. Fosu which lays out the general framework with hard but interesting stylized facts, before summarising the key motivations and contributions of various chapters with very accessible and non-technical language. This is a critical review of the book.}, keywords = {African development, Growth, Institutions}, pubstate = {published}, tppubtype = {article} } Augustin K. Fosu, a leading and respected expert in the field of African development has edited an interesting bulk of studies in a book entitled: Growth and Institutions in African Development. The book is a timely contribution to knowledge that offers very interesting insights into views and agenda within rigorous theoretical and empirical frameworks on policy issues surrounding the relevance of growth and institutions in African development. The book’s coverage comprises of 15 chapters presented into two main subject areas, namely: growth and institutions. Each of the two subjects is further divided into two parts. On the one hand, the growth area covers: (i) growth determinants (industrial embeddedness, innovation, exchange-rate regimes and environmental quality); and (ii) sectors, dynamics and distribution of growth. On the other hand, the institutions area entails: (i) institutional development; and (ii) institutions and development outcomes. An interesting common denominator among authors of various chapters in the two subject areas is that the empirical results are succinctly summarised to enhance accessibility and readability by interested readers who might have required technical reading skills to understand the rigorous empirical analyses and resulting policy insights. Hence, it is an easy-to-read and richly policy-relevant book for both specialists and non-specialists. Moreover, the underlying ease of readership is facilitated with an introductory chapter by Augustin K. Fosu which lays out the general framework with hard but interesting stylized facts, before summarising the key motivations and contributions of various chapters with very accessible and non-technical language. This is a critical review of the book. |
577. | Kodila-Tedika, Simplice Asongu Oasis A International Journal of Social Economics, 43 (5), pp. 466 - 485, 2016. Abstract | Links | BibTeX | Tags: Africa, Conflicts, Crimes, governance, Security @article{Asongu_571, author = {Simplice A. Asongu Oasis Kodila-Tedika}, url = {http://dx.doi.org/10.1108/IJSE-11-2014-0233}, doi = {10.1108/IJSE-11-2014-0233}, year = {2016}, date = {2016-04-26}, journal = {International Journal of Social Economics}, volume = {43}, number = {5}, pages = {466 - 485}, abstract = {Purpose – Crimes and conflicts are seriously undermining African development. The purpose of this paper is to assess the best governance tools in the fight against the scourges. Design/methodology/approach – The authors assess a sample of 38 African countries. Owing to the cross-sectional structure of the data set, the authors adopt a heteroscedasticity consistent ordinary least squares estimation technique. For further robustness purposes, the authors employ Ramsey’s regression equation specification error test. Findings – The following findings are established. First, democracy, autocracy and voice and accountability have no significant negative correlations with crime. Second, the increasing relevance of government quality in the fight is as follows: regulation quality, government effectiveness, political stability, rule of law and corruption-control. Third, corruption-control is the most effective mechanism in fighting crime (conflicts). Practical implications – The findings are significantly strong when controlling for age dependency, number of police (and security) officers, per capita economic prosperity, educational level and population density. Justifications for the edge of corruption-control (as the most effective governance tool) and policy implications are discussed. Originality/value – The study is timely given the political instability, wars and conflicts currently marring African development.}, keywords = {Africa, Conflicts, Crimes, governance, Security}, pubstate = {published}, tppubtype = {article} } Purpose – Crimes and conflicts are seriously undermining African development. The purpose of this paper is to assess the best governance tools in the fight against the scourges. Design/methodology/approach – The authors assess a sample of 38 African countries. Owing to the cross-sectional structure of the data set, the authors adopt a heteroscedasticity consistent ordinary least squares estimation technique. For further robustness purposes, the authors employ Ramsey’s regression equation specification error test. Findings – The following findings are established. First, democracy, autocracy and voice and accountability have no significant negative correlations with crime. Second, the increasing relevance of government quality in the fight is as follows: regulation quality, government effectiveness, political stability, rule of law and corruption-control. Third, corruption-control is the most effective mechanism in fighting crime (conflicts). Practical implications – The findings are significantly strong when controlling for age dependency, number of police (and security) officers, per capita economic prosperity, educational level and population density. Justifications for the edge of corruption-control (as the most effective governance tool) and policy implications are discussed. Originality/value – The study is timely given the political instability, wars and conflicts currently marring African development. |
578. | Asongu, Lieven De Moor Simplice A European Journal of Development Research, 2016. Abstract | Links | BibTeX | Tags: Banking; International investment; Financial integration; Development @article{Asongu_572, author = {Lieven De Moor Simplice A Asongu}, url = {http://www.palgrave-journals.com/ejdr/journal/vaop/ncurrent/full/ejdr201610a.html}, doi = {10.1057/ejdr.2016.10}, year = {2016}, date = {2016-04-21}, journal = {European Journal of Development Research}, abstract = {We investigate whether financial development benefits from financial globalisation are questionable until certain thresholds of financial globalisation are attained. The empirical evidence is based on (i) data from 53 African countries for the period 2000–2011 and (ii) interactive Generalised Method of Moments with forward orthogonal deviations. The following findings are established. First, thresholds of Net Foreign Direct Investment Inflows as a percentage of GDP (FDIgdp) from which financial globalisation increases money supply are 20.50 and 16.00 for below- and above-median sub-samples of financial globalisation, respectively. Second, FDIgdp thresholds from which financial globalisation increases banking system activity and financial system activity for below-median sub-samples of financial globalisation are 13.81 and 13.29, respectively. Third, for financial size, there is evidence of: (i) a positive threshold of 21.30 in the full sample and (ii) consistent increasing returns without a modifying threshold for the above-median sub-sample. Policy implications are discussed.}, keywords = {Banking; International investment; Financial integration; Development}, pubstate = {published}, tppubtype = {article} } We investigate whether financial development benefits from financial globalisation are questionable until certain thresholds of financial globalisation are attained. The empirical evidence is based on (i) data from 53 African countries for the period 2000–2011 and (ii) interactive Generalised Method of Moments with forward orthogonal deviations. The following findings are established. First, thresholds of Net Foreign Direct Investment Inflows as a percentage of GDP (FDIgdp) from which financial globalisation increases money supply are 20.50 and 16.00 for below- and above-median sub-samples of financial globalisation, respectively. Second, FDIgdp thresholds from which financial globalisation increases banking system activity and financial system activity for below-median sub-samples of financial globalisation are 13.81 and 13.29, respectively. Third, for financial size, there is evidence of: (i) a positive threshold of 21.30 in the full sample and (ii) consistent increasing returns without a modifying threshold for the above-median sub-sample. Policy implications are discussed. |
579. | Asongu, Mohamed Jellal Mohamed Bouzahzah Simplice A Theoretical Economics Letters, 6 , pp. 131-137, 2016. Abstract | Links | BibTeX | Tags: Education, Growth, Human Capital, Institutions @article{Asongu_573, author = {Mohamed Jellal Mohamed Bouzahzah Simplice A. Asongu}, url = {http://file.scirp.org/pdf/TEL_2016033116111456.pdf}, doi = {10.4236/tel.2016.62015}, year = {2016}, date = {2016-04-13}, journal = {Theoretical Economics Letters}, volume = {6}, pages = {131-137}, abstract = {This study articulates the interaction among institutional governance, education and economic growth. Given the current pursuit of education policy reforms and knowledge economy around the world, it is of policy relevance to theoretically analyze the main mechanisms by which the macroeconomic impact of education on growth (and economic development) occurs. Our theoretical model demonstrates how incentives offered by the government affect human capital accumulation which ultimately engenders positive economic development externalities. We articulate two main channels through which education affects economic growth. The first channel highlights direct positive effect of educational quality on the incentive to accumulate human capital by individuals, which makes them more productive. The second channel appears in the explicit function of the economic growth rate. As a policy implication, we have shown that the growth rate depends on the rate of return on human capital or that this rate of return itself depends on the quality of governance, which further increases growth. As a result, institutional quality has a double dividend, which suggests considerable benefits to educational reforms.}, keywords = {Education, Growth, Human Capital, Institutions}, pubstate = {published}, tppubtype = {article} } This study articulates the interaction among institutional governance, education and economic growth. Given the current pursuit of education policy reforms and knowledge economy around the world, it is of policy relevance to theoretically analyze the main mechanisms by which the macroeconomic impact of education on growth (and economic development) occurs. Our theoretical model demonstrates how incentives offered by the government affect human capital accumulation which ultimately engenders positive economic development externalities. We articulate two main channels through which education affects economic growth. The first channel highlights direct positive effect of educational quality on the incentive to accumulate human capital by individuals, which makes them more productive. The second channel appears in the explicit function of the economic growth rate. As a policy implication, we have shown that the growth rate depends on the rate of return on human capital or that this rate of return itself depends on the quality of governance, which further increases growth. As a result, institutional quality has a double dividend, which suggests considerable benefits to educational reforms. |
580. | Asongu, Jacinta Nwachukwu Simplice C A Social Science Quarterly, 2016. Abstract | Links | BibTeX | Tags: Foreign Aid; Political Economy; Development; Africa @article{Asongu_574, author = {Jacinta Nwachukwu C Simplice A. Asongu}, url = {http://onlinelibrary.wiley.com/doi/10.1111/ssqu.12275/abstract?userIsAuthenticated=false&deniedAccessCustomisedMessage=}, doi = {10.1111/ssqu.12275}, year = {2016}, date = {2016-04-12}, journal = {Social Science Quarterly}, abstract = {Objective Motivated by the April 2015 World Bank Publication on MDGs, which reveals that poverty has been declining in all regions of the world with the exception of African countries, this study investigates the effects of a plethora of foreign aid dynamics on inequality-adjusted human development. Methods Contemporary and noncontemporary OLS, fixed effects, and a system GMM technique with forward orthogonal deviations are employed. The empirical evidence is based on an updated sample of 53 African countries for the period 2005–2012. Results The following findings are established. First, the impacts of aid dynamics with high degrees of substitution are positive. These include aid for: social infrastructure, economic infrastructure, the productive sector, and multisectors. Second, the effect of humanitarian assistance is consistently negative across specifications and models. Third, the effects of program assistance and action on debt are ambiguous because they become positive with the GMM technique. Conclusions Justifications for these changes and clarifications with respect to existing literature are provided. Policy implications are discussed in light of the post-2015 development agenda. We also provide some recommendations for a rethinking of theories and models on which development assistance is based.}, keywords = {Foreign Aid; Political Economy; Development; Africa}, pubstate = {published}, tppubtype = {article} } Objective Motivated by the April 2015 World Bank Publication on MDGs, which reveals that poverty has been declining in all regions of the world with the exception of African countries, this study investigates the effects of a plethora of foreign aid dynamics on inequality-adjusted human development. Methods Contemporary and noncontemporary OLS, fixed effects, and a system GMM technique with forward orthogonal deviations are employed. The empirical evidence is based on an updated sample of 53 African countries for the period 2005–2012. Results The following findings are established. First, the impacts of aid dynamics with high degrees of substitution are positive. These include aid for: social infrastructure, economic infrastructure, the productive sector, and multisectors. Second, the effect of humanitarian assistance is consistently negative across specifications and models. Third, the effects of program assistance and action on debt are ambiguous because they become positive with the GMM technique. Conclusions Justifications for these changes and clarifications with respect to existing literature are provided. Policy implications are discussed in light of the post-2015 development agenda. We also provide some recommendations for a rethinking of theories and models on which development assistance is based. |